The former Malaysian prime minister Najib Razak has appeared in court again, facing a third round of criminal charges relating to the 1MDB corruption scandal that saw billions in government money stolen.

At a court in Kuala Lumpur on Thursday, Najib, who was defeated in a shock election in May, was charged with six counts of criminal breach of trust relating to $1.59bn of government funds used for illicit means. He pleaded not guilty to all charges.

It brings to 38 the total number of charges against Najib, who has already pleaded not guilty to dozens of fraud, corruption and money laundering charges over the 1MDB scandal, described as the biggest in Malaysia’s history. Prosecutors allege billions of dollars were embezzled and lavishly spent around the globe on luxury property, a private yacht, Hollywood films and extravagant shopping sprees.

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Najib had previously cleared himself of all wrongdoing but the new administration, led by 93-year-old Mahathir Mohamad, reopened the investigation into the scandal, leading to multiple arrests.

The former Malaysian treasury secretary general Irwan Serigar was jointly charged with Najib on Thursday.

Najib’s lawyer, Shafee Abdullah, said in court he was “delighted” to hear the charges, which he described as “atrocious”. “We are looking forward to defending him,” said Shafee.